MUMBAI: The nation’s largest lender State Bank of India has launched a maiden $500-million syndicated social term loan facility, focused exclusively on women’s empowerment. The facility, the largest gender-themed loan globally and the first in the country, has a green-shoe option, which means the bank is free to raise more than $500 million.
This syndicated loan is a milestone for SBI and the global ESG financing landscape, helping women’s financial empowerment by accelerating social impact to reduce the gender gap and contributing meaningfully to UN’s sustainable development goal 5, which deals with achieving gender equality and empowering all women and girls.
Announcing the social loan initiative, chairman CS Setty said, "This landmark social loan embodies our dedication to environmental, social, and governance (ESG) principles, with a sharp focus on creating opportunities for women. We believe that true progress depends not only on economic growth but also on our ability to drive positive social change, empower women, and build an inclusive society for all stakeholders.”
Setty further said the initiative on the eve of International Women’s Day shows that SBI is committed to fostering women's empowerment as a cornerstone of sustainable development.
“The transaction, the first of its kind by SBI, aimed at supporting gender equality and inclusive economic growth, is expected to be the largest gender-themed loan globally, representing a landmark initiative in sustainable finance by a domestic financial institution," the chairman said.
The Japanese banking giant MUFG is acting as the original mandated lead arranger, underwriter and bookrunner and sole social loan coordinator for the transaction, the SBI statement said.